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Posting by: Debra Andrews
Date: June 17, 2009
Whether you are currently part of a family business or not, the vast
majority of us have experience being in a family. If we have siblings,
we may have had some tests of equality given to us – such as, “I had to
go to community college, but mom and dad sent little Suzie to
Harvard!” And most of us have also learned that being related does not
mean we are completely, or remotely, alike. We may have different
skills, interests, strengths & weaknesses. And we may especially
have different dreams for our future.
Now apply these family challenges to a family business. Personal
rivalries become professional ones. The peace of the family is no
longer the only thing at stake – the survival of the business may be as
well. Dirty laundry once aired in public cannot be crammed back into
the family washing machine; it is now part of the public domain. Legal
wrangling regarding “preferential treatment” for one sibling over
another exposed a son suing his father for forcing him off the board of
Viacom, Inc. and instead promoting his sister. This certainly
minimizes the scope of the fight over who got the bigger slice of
chocolate cake.
Let’s not forget the extended family of your family business – your
other employees. How frustrating and morale-crushing to give your
loyalty, expertise and work ethic to a business for an entire career,
only to be told one summer that “Junior,” who just flunked out of his
fourth private university, with be – gulp – your new boss! Insult is
added to injury when there is a written standard that employees are
required to follow, yet family members seem to be immune from such
regulations. Pretty soon your family business will lose its edge,
either due to your key employees leaving for a more level playing
field, or by the remaining employees who choose to start following
Junior’s example of three-hour lunches, lack of accountability and a
sense of entitlement.
Not an easy fix, but there are ways to structure your family
business to avoid some of these pitfalls. Why not make your written
company policies (ensuring first that you even have any) applicable to
everyone? Even though some work discussions may occur at the family
dinner table, remember to discuss company prior to formally hiring
relatives, and have them sign the same contracts and acknowledgements
of company policy signed by the rest of your employees. It could be
helpful to consider the same minimum hiring requirements for your
family members as for others being considered for the same position.
For example, if your salespeople must have a degree in business, so
should your wayward nephew. Afraid of playing Family Feud? Don’t
worry about that, once the family business goes bankrupt, there will be
nothing left to fight about.
A final consideration: Do all your company’s family members even
want to be a part of the business? You could put your blood, sweat and
tears into starting your family enterprise, but if Junior has always
wanted to wrestle alligators, you may need to let him go so that you
don’t have to wrestle unhappy employees.
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